Types of contract
The Authority uses a variety of contracts. The type of contract depends on the requirement for the goods or service. For example, for a low value, simple procurement, a letter of agreement referring to the Authority's Standard Terms & Conditions can be sufficient. However, for the provision of high value and/or high risk goods or services, a tendering process will usually be used. The variety of contracts we use include:
1. Purchase orders - a purchase order will usually be issued for any purchase of goods and services. As a general rule the Authority's Standard Terms & Conditions apply to all procurements.
2. One-off contracts - these are contracts which meet a specific need and will generally be short-term to supply goods, services or works. For example:
- A consultancy for a one-off project
- The purchase of a particular piece of equipment
- A one off building project.
3. Call-off or framework contracts - this is where the terms, conditions and prices (or at least the pricing strategy) are agreed with a supplier or a number of suppliers, for the supply of goods and services. Making orders under the umbrella contract is by way of quotation if there is more than one supplier on the framework, or calling off from the single supplier. These contracts are usually longer term, i.e. between three and five years. Examples of this type of contract are:
- Repair work to premises
- Purchase of consumables
- Purchase of IT equipment.
4. Partnership contracts (or partnering contracts) - these are contracts where the Fire Authority is seeking to develop a service or asset, in partnership with a service provider. The service provider will often have a substantial say in how the service (or works) is developed throughout the life of the contract. Where services are concerned, partnership contracts will be long term (often five to seven years). An example of this type of contract is for the design and construction of new buildings.
Continue to: Contract rules and laws.
